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Israel reopened the tendering process for 486 housing units in a settlement located in occupied Arab east Jerusalem, officials said on Wednesday. "Tenders for the project in the neighbourhood of Pisgat Zeev were invited at the start of the week after approval by the Israeli housing minister," an Israel Lands Authority official said, according to AFP.

Originally, tenders were invited late last year but authorities rejected all the bids because of pricing disagreements. Last month, an Israeli daily reported the tendering process would now be reopened.

On Monday, Israel authorised construction of 455 new homes in the occupied West Bank, defying international pressure.